BUSINESS
Pervasive or Invasive? The Ethical Implications Of AI In Retail
By: Alessandra Zurini Edited by: Mams Jagha
Artificial Intelligence (AI) has been enhancing many different spaces with faster and more innovative ideas. More recently, the fashion and retail space has seen a significant transformation with the use of AI in the industry. From 24/7 customer service using AI chatbots to Augmented Reality changing rooms, the shopping experience we know is changing.
The AI-powered tools can optimize the way inventory is managed through data analysis to make it easier for sales associates to assist customers. Consumers will see more personalization with data-driven insights that can do trend and demand forecasting in record time. Sales associates are able to focus all their attention on the consumer now that AI can handle the background work. However, there are some ethical concerns from professionals in the industry.
Kathlin Argiro, a fashion designer, entrepreneur, and adjunct professor at the Fashion Institute of Technology (FIT) in New York City sees the use of technology like AI as the future, but emphasises how important education is surrounding its use in retail. Argiro just launched a non-profit called Artisans, Ethics, and AI in February.
“Addressing the ethical issues of AI is of paramount importance now because we're in the very early days. So we need to correct this early on before it becomes a runaway freight train like it has in fast fashion,” Argiro said.
Argiro mentioned another issue is the extensive fear surrounding the use of AI in creative fields. She stressed the importance of retail associates and designers connecting face to face with customers. Since AI has gained popularity, many companies have started to lay off employees in favor of AI models to save money.
“I think a lot of people are terrified of it. For example, my fashion students and all creatives think it's going to take their jobs and they won't need humans anymore,” Argiro said.
This fear is also affecting employees in the retail industry. Emma Stark, a Syracuse University student who has worked at Old Navy and The Gap, said she feels the pressure of the new technology.
“I really hope it doesn't replace our jobs like retail associates and retail managers. It's so important to connect with the customer,” Stark said.
Another issue is bias in AI models. DEI is increasingly important, especially in the fashion and retail space as diverse representation is the key to creativity. It is especially crucial to protect DEI initiatives to maintain inclusion and foster a sense of belonging in the industry. Consumers want to see someone that looks like them wearing the clothes they like. Argiro said many of the AI models are relatively new, so they haven't had the exposure to produce content with inclusion in mind.
“That's one thing that's really an issue. The bias. Most images are of a Barbie-looking white woman or a white businessman. You don't have any inclusivity or diversity which becomes a problem in retail. People want to see themselves,” Argiro said.
Argiro also said that AI uses a mass personalization model to target the customers needs, and retailers have to be cognizant of protecting their client's privacy while using new technologies. While AI personalization is tremendously important in marketing, it can be a slippery slope as privacy concerns arise. Alexandra Eder, a Syracuse University student at the Martin J. Whitman School of Management, sees the advantages of AI in retail but has some trepidation around the security and use of her data.
“If I see an ad, like about something that I was just talking about, or just looking at, I become more aware of how AI is using my data, and that to me seems a little unsettling. I like personalized ads because it's like they read my mind and then obviously I like what they're showing me, so I'm more inclined to buy it. But I do find it a bit unsettling,” Eder said.
The world of fashion is constantly evolving as the trends change. Retailers need to keep up in order to remain relevant and avoid extinction. AI is an impactful tool to take advantage of and grow your business. However, it’s important to explore all aspects of the technology and examine it from an ethical lens to protect ourselves.